Charlie O'Connor (Dublin South West, Fianna Fail)

I did. I am glad the Leas-Cheann Comhairle is here. I am happy to make a brief contribution on this Bill. I repeat what I said earlier, that irrespective of the importance of the subject under discussion and the public response to it, people want us to get on with the business as we have been doing over the past couple of days and it is important that we do that. What we are discussing this morning is very much part of that.

While we transposed this directive by way of EC regulations, the scale of the maximum penalties proposed for serious breaches of certain of the new MiFID regulations is such that primary legislation is needed. That is the main reason for this Bill. The proposed maximum penalties are fines of up to €10 million and-or ten years imprisonment on foot of conviction on indictment. The level of the proposed penalties is in line with the maximum penalty provisions set out in other financial services legislation such as the Investment Funds, Companies and Miscellaneous Provisions Act 2005. I note that minor offences will, as a matter of course, continue to be dealt with through the administrative sanctions system and-or as summary offences.

This Bill also empowers the Financial Regulator to levy fees on the financial services sector towards the cost of implementing its new MiFID functions. I also note that the Stock Exchange Act 1995 is being repealed in this Bill as its provisions are being superseded by the MiFID regulations. This Bill is being taken at this time as the new MiFID regime comes into effect for the industry across the EU member states on 1 November.

The Markets in Financial Instruments Directive is a significant directive for the financial services sector. Ireland was one of the first member states to transpose this directive through detailed comprehensive regulations earlier this year. This has created an important competitive advantage for the financial services sector in Ireland as it provides legal certainty about what is required and plenty of time to plan. This adds to Ireland's strong record in the transposition of EU financial services directives.

Deputy Connaughton spoke about credit unions. It is important we should support our local credit unions. That applies in Cork, Kilkenny and Wexford as well as in the Dublin region. I am particularly supportive of my local credit unions in Tallaght, Firhouse, Templeogue and Greenhills. It is interesting that credit union organisations, which do so much great work in our communities, often come to public representatives to discuss issues of concern to them. As a public representative, but also as a customer, I am able to make representations about the issues brought to me by credit unions and their members and, like the last speaker, I am pleased to do that.

As Deputy Chris Andrews said, this is a very technical Bill. It is difficult to get simple sound bites from it. The legislation is clearly important and, at a time when politics in this House has become so competitive, it is good to hear colleagues agree that it is good legislation. I am sure the Ministers of State are happy to hear that. It will be interesting to see whether there will be a vote on it later.

Section 9 of the Bill will ensure that appropriate sanctions can be provided for a conviction on indictment for specified offences in the reinsurance regulations which were introduced in July 2006 as part of the transposition of the EU reinsurance directive. The proposed maximum penalties for serious offences are fines of up to €10 million and-or ten years imprisonment on foot of conviction on indictment. The indictable offences include the offence of carrying on reinsurance business without authorisation. Minor offences will, as a matter of course, continue to be dealt with through the administrative sanctions system and-or as summary offences.

Section 10 deals with the Netting of Financial Contracts Act which provides protection for netting or set-off arrangements between parties to financial contracts in the event of insolvency. Given the rapid pace of change in financial services, this Bill now widens the definition of financial contracts in response to market developments.

Section 11 deals with client moneys. The Bill amends section 52 of the Investment Intermediaries Act 1995 to confirm certain limitations of receiver-liquidator access to client money following the winding up of an authorised investment business firm as recommended in the report of the Morrogh Review Group.

Section 12 provides for a simplification for the State ownership of Icarom plc, formerly the Insurance Corporation of Ireland, which, I understand, is under administration, by authorising the removal of the holding company from the current ownership structure.

The question of the Financial Regulator is dealt with in section 13. Section 13(a) and (b) enable the Financial Regulator to disclose confidential information to the National Consumer Agency for the performance of the agency's functions as provided for in the Consumer Protection Act 2007, subject to any EU confidentiality constraints. Section 13(c) extends the deadline for submission of its annual budget by the Financial Regulator from end September to end October each year. Given the complexity of the process for establishing the Financial Regulator's budget, it is felt that the Financial Regulator should be given a more extensive period for preparation. Section 13(f) will reduce the number of required compulsory retirements from the board of the Financial Regulator by the number, if any, of voluntary resignations which may have occurred between the relevant anniversary dates to ensure continuity of membership and to minimise any potential disruption to the efficient working of the Financial Regulator.

Section 13(d) and (e), on the Financial Services Ombudsman, relieves the Ombudsman of the requirement to provide the Financial Regulator with certain details where he decides not to investigate or to discontinue an investigation. The Bill also provides that members of the Ombudsman Council shall not be liable for costs arising from the discharge, in good faith, of their statutory duties.

I am sure the students in the Gallery are delighted to be here, although perhaps they are a little upset by being out of school. It is good that they had the opportunity to see national personalities in the person of the Ceann Comhairle and the Leas-Cheann Comhairle who is also an easily recognisable personality. I have no doubt the Minister of State, Deputy Batt O'Keeffe, has fans all over the country.

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